Great News Everyone Chinese Automakers Eye Mexican Foothold Amidst Trade Turmoil

Wernstrom The Chinese Are Coming

Good news everyone It seems those clever Chinese automakers BYD and Geely are eyeing a Nissan Mercedes plant in Mexico. Why you ask Well those pesky U.S. tariffs are squeezing Mexico's auto industry like a lemon and these companies are looking for a back door a new outlet a new sensation. As I always say "I don't want to live on this planet anymore," but I'm sure some folks down there will be thrilled to have new jobs. Or maybe they'll just be enslaved by robots; who can say

A Delicate Balancing Act

Now Mexican officials are in a bit of a pickle. They need the jobs that Chinese investment could bring but they're also worried about Uncle Sam throwing a hissy fit. You see President Trump in his infinite wisdom (or lack thereof) thinks Mexico is providing a back door for Chinese goods to sneak into the U.S. market. It's a classic case of "the spirit is willing but the flesh is spongy and bruised." Perhaps a visit to the Smell O Scope would clear things up Or maybe not. If you are interested in all of this then check out Mortgage Rate Madness Reality Bites Homeowners

From Zero to Ten Percent in Record Time

Let's talk numbers shall we BYD and Geely have seen explosive growth selling as many cars as Ford imagine that. And in Mexico their market share has jumped from zero to about 10% in just a few years. It's like they've invented a doomsday device but instead of destroying the world they're just selling cars. Still quite impressive. It reminds me of the time I invented Smell O Vision but that's another story for another time.

Red Tape and Roadblocks

Of course nothing is ever simple is it The Mexican government is trying to slow down these Chinese investments until they finish trade talks with the U.S. Apparently they're worried about "subsidized Chinese overcapacity" flooding the market. Personally I think we should just embrace the chaos and see what happens. After all "when you do things right people won't be sure you've done anything at all."

The Price of Progress

Here's the real kicker A GM plant in Mexico is laying off workers because of weak U.S. demand for electric vehicles coinciding with the construction of a new Chinese auto parts factory nearby. It's a sign of the times I suppose. "Good news everyone" we may be doomed. The robots are here and they're taking our jobs even faster than the immigrants

A Win Win Scenario Or is it

Despite the political drama many in Mexico see Chinese investment as a good thing. The Nissan Mercedes plant has skilled workers and the infrastructure to build 230,000 vehicles a year. And as one consultant put it "there's not a single state in Mexico that wouldn't be open and even support having Chinese automakers invest manufacture and hire locally." So maybe there's hope for humanity after all. Or maybe we're all just doomed. Only time and the vastness of space will tell.